The Crowding-Out Effect Refers to Which of the Following

question 151

Multiple Choice

The crowding-out effect refers to which of the following?

• A) reductions in aggregate demand that occur as the government enacts a fiscal policy that is intended to eliminate an inflationary gap
• B) price increases that result in less purchasing power for consumers
• C) increases in consumption spending that leave fewer resources available for the economy to use to create capital
• D) reductions in private investment spending that offset increases in other spending

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Definitions:

Navigation Bar

A user interface component that contains links to navigate within a website or application.

Print Preview

A feature that allows users to view a document exactly how it will appear when printed, facilitating adjustments before final printing.

Print Preview

A feature that allows users to view a document as it will appear when it is printed, before actually printing it.

Select All Button

A graphical user interface element that, when clicked, selects all available data or options in a window or application.